The Consumer Credit Act (1974) gives you the right to ask for a copy of the original credit agreement for a debt. This is known as a ‘CCA request’.
CCA requests are very important as, without a valid credit agreement, the debt is legally unenforceable. However, they can also be quite complex and require further clarification.
What is the Consumer Credit Act (CCA)?
The Consumer Credit Act is an important piece of legislation in the UK. It sets out how businesses can lend to consumers, how debts can be collected, and what your rights are when you enter into a credit agreement.
However, these rules only cover certain debts, known as ‘regulated debts’. This includes credit cards, personal loans, payday loans, store cards, hire purchase agreements, and catalogues.
The kinds of debts that are not covered by the CCA include mortgages, debts owed to family and friends, utilities (e.g. gas, electricity, and water), and government debts (e.g. council tax and benefits overpayments).
Put simply, you have more rights when you owe a debt that’s regulated by the CCA. For example, you must be given a default notice to give you time to bring your account up to date before further action is taken and there are limits to the type of court action creditors can take. The creditor must also inform you of your cancellation rights when you sign the agreement.
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What is a CCA request?
Under the Consumer Credit Act 1974 (sections 77-79), you have a right to make a formal request for a true copy of a credit agreement and a statement of account for a regulated debt you’re being asked to pay. This is called a CCA request.
The purpose of a CCA request is to allow you to review the original account details, including the interest rate, name and address, repayment amount, and any other documents mentioned in the agreement. It must be sent to your original creditor or the debt collection company that it’s been passed on to.
Sending a CCA request essentially puts your account into dispute, during which time the creditor can’t take any further action. However, it doesn’t mean the debt no longer exists.
By reviewing your original credit agreement, you might discover an error or discrepancy (e.g. improper formatting or the wrong interest rate) that renders the debt unenforceable. There is a £1 fee payable under the Consumer Credit Act to submit a CCA request, which must be sent as a postal order or a cheque.
It’s important to note that, as tempting as it may be, the CCA request process shouldn’t be used to avoid making monthly payments towards your debt. It should only be used if you require further information about your account or if you have a valid reason to believe a creditor shouldn’t be chasing you for a debt.
Can you make a CCA request for a joint debt?
If you’re a joint account holder, you have the right to make a CCA request for the account in question and the creditor must provide information to the party who requested it.
The process of making a CCA request for a joint debt is the same as making a CCA request for an individual debt. Simply send a letter asking for a true copy of the credit agreement and wait 12 days for a response.
Put simply, as long as the debt is covered by the Consumer Credit Act, you can make a request for the account details.
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When should I request a copy of my original credit agreement?
There are certain situations in which a CCA request could be a good idea. We’ve outlined these situations below:
If the creditor is threatening court action
If your creditor is seriously threatening you with court action, submitting a CCA request can help you verify that the debt is yours to pay and the amount you’re being asked to pay is correct.
However, if the debt has escalated to the point where you’ve already been issued with a County Court Judgment (CCJ) for the debt, it’s too late to make a CCA request and the creditor doesn’t have to respond.
If you want to cut a Debt Management Plan (DMP) short
If you’re currently in a Debt Management Plan (DMP) and you want to reduce the time it’s taking to repay your debt, a CCA request can put a stop to regular payments earlier than planned.
The only time a CCA request might not be the best option is if you’ve recently started the DMP. In this case, your creditor probably still has a copy of your credit agreement to hand so it’s unlikely that you’ll be allowed to stop paying the debt.
If you’re considering a debt settlement offer
If you’re thinking about settling an old debt, a CCA request can be useful before making an offer of payment as it could reveal something that affects your settlement amount.
For example, if no credit agreement can be found, it might mean you don’t have to pay anything towards the debt in the end and you don’t need to make an offer of payment.
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How do I make a CCA request?
It’s possible to call your creditor to ask for a copy of your credit agreement, but we recommend getting in touch with them by writing to them.
There are many pre-written template letters to be found online, like this one from National Debtline:
Dear Sir/Madam
Account Number:
Your account or reference number (required)
Please send me a copy of the above credit agreement and a full breakdown of the account including any interest or charges added.
I understand that under the Consumer Credit Act 1974 (sections 77-79), I am entitled to receive a copy of any credit agreement and a statement of account when I request it. I enclose a payment of £1 which is the fee payable under the Consumer Credit Act 1974.
I understand a copy of any credit agreement along with a statement of account should be supplied within 12 working days.
I understand that, under the Consumer Credit Act 1974, creditors are unable to enforce an agreement if they fail to comply with the request for a copy of the agreement and statement of account.
I look forward to hearing from you.
Yours faithfully
Regardless of how you word your letter, there are three key points you must meet: you must send it to the current owner of the debt, you must send it with the £1 fee enclosed, and you must send it recorded delivery to ensure it reaches its intended recipient.
Once your creditor has received the CCA request, they have 12 working days to respond. During this time, the default continues and they can’t take any further action against you for the debt or any other debt you have with them. The debt also becomes unenforceable until they can provide proof that you owe the money.
If they successfully send you a copy of the credit agreement any time after you make a request and the letter states that the debt is not statute barred, they can resume legal action against you to recover the debt.
Do I still owe money if I don’t get a response to my CCA request or if the debt has been passed to a debt collector?
The good news is, if your creditor is unable to produce a valid credit agreement, the debt can’t be legally enforced.
This means that your creditor won’t be able to take legal action against you to get you to pay. This includes sending enforcement agents to your home, taking you to court to force you to make payment, deducting the money from your wages or bank account, and seizing any items purchased via hire purchase or on credit.
However, the debt still exists, meaning your creditor can still add interest and charges, send you a default notice, and pass your debt to a collection agency.
It’s worth noting that it is rare to receive a response to a CCA request before the 12-day deadline, especially if the debt has been passed to a debt collector and they need to get a copy of the credit agreement from your original creditor.
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Can I stop paying the debt if I don’t get a response in 12 days?
If you want to stop paying the debt after 12 days of no response, you have the right to do so. However, most CCA requests are fulfilled after this deadline, so it’s recommended to wait a few months in case a copy of the credit agreement eventually appears.
There is always a chance that the credit agreement could be found at a later date, but if several months have passed and it still hasn’t been found, it likely never will.
Remember, even if the debt is legally unenforceable, it still exists. This means that your creditor can still contact you and try to recover payment through other means. It will also remain on your credit record, affecting your credit score and your ability to obtain further credit for several years.
For further advice on how to manage your unaffordable debt, don’t hesitate to get in touch with a financial advisor or your local Trading Standards or Citizens Advice Bureau. Living with debt can be worrying, but you always have options.
Conclusion
A CCA request can be used to find out more information about a debt covered by the Consumer Credit Act (1974). Some of the debts covered by the CCA include personal loans, credit cards, and hire purchase agreements.
Until a creditor is able to produce a valid credit agreement, the debt remains unenforceable. This means that they can’t take any further action to get you to pay it.
Once a creditor has received a CCA request, they will have 12 working days to submit a response. However, it’s rare to receive a response in this time and the debt will remain on your credit file.
